So you're looking for a way to work at home without
investing a large sum of money? You might be attracted to one of
the many advertisements offering low-cost work-at-home or
money-making opportunities: stuffing envelopes, assembling
products, reading books or watching television for pay.

Advertisements tout these opportunities as flexible and easy to
start. They claim you can work full time or part time; costs to get
into the business are generally quite low; and the work requires
minimal training or experience. What's more, advertisements
promise alluring financial rewards in minimal time.

Sound too good to be true? It might be. Some opportunities
deliver what they promise--but others promise one thing and deliver
another. Rather than reap fabulous earnings, purchasers are stuck
with products they can't sell, services for which there's
no market, or training that doesn't open doors to business
contracts. Fortunately, there are ways to protect yourself.

Check It Out

If a work-at-home opportunity requires buying goods or services
upfront that cost more than $500 (less in some states), the program
meets the legal definition of a business opportunity.
"Generally speaking, a business opportunity is the sale of
goods or services enabling the purchaser to begin a business, and
where the seller makes certain statements, representations or
guarantees in the course of the sale," says Andrew A. Caffey,
an attorney in the Washington, DC, area who specializes in
franchise and business opportunity law.

These statements, he explains, usually refer to the seller
promising to help find accounts, guaranteeing income in excess of
the business opportunity's purchase price, and offering to buy
back any unsold products assembled or grown by the purchaser.
"Last but not least," adds Caffey, "the seller
claims that a market exists for the products or services to be sold
by the purchaser."

Companies that meet the legal definition of a business
opportunity are easier to investigate than companies that simply
offer you a job working at home. In either case, however, there are
still ways to find out if the opportunity is legitimate.

The best advice? "Do your homework," says Barry
Goggin, president of the Better Business Bureau of Northeast
California in Sacramento. People tend to invest in work-at-home
opportunities "without doing the things that would be
automatic if they were going to open a retail store," says
Goggin. "You've got to ask questions, get information,
evaluate what you know and then make your decision."

Follow this seven-step plan to figure out whether a work-at-home
opportunity is on the level:

1. Evaluate the advertisement. Before you send any
money to buy a program advertising "$2,000 a week, no
experience necessary," check the ad for other details. Is
there a phone number you can call for further information, or must
you respond to a post office box? If you can speak with an
individual, is the person a company representative or simply
someone hired to take telephone orders?

Legitimate companies make it easy for you to ask questions.
They'll give you the information at no cost, and they won't
pressure you into buying their program before you've checked
them out.

2. Ask plenty of questions. Before you send any
money, get answers to the following: What is the total cost of the
seller's program, including training, supplies, equipment and
any special fees? What materials and support services will you
receive in return for your investment? Are you responsible for
finding your own customers, or will the company find them for
you?

If you'll be making or assembling products, ask what the
company's standards are in order for your work to be accepted.
When and how will you be paid? If you're buying products for
resale to the general public, ask whether the company will buy back
products you can't sell.

"Find out if the market for the product or service
you'll be selling has been tested and what your competition
is," advises Goggin. "If you're paying for marketing
support, what is the company's level of
expertise? Do they have a [well-thought-out] marketing plan, or
will they just send you a few tips and expect you to do the
rest?"

Finally, if you'll be enrolling in a company's training
program to learn certain skills, like how to run a travel agency or
do medical transcription, evaluate the quality of the training. Ask
to see a list of program graduates. Call several to find out if the
training was adequate in helping them start working at home.

3. Be aware of state requirements. If the initial
investment for the opportunity exceeds $500, call your state's
attorney general's office to see if your state has a business
opportunity law. If so, has the company registered with the state
and met other requirements? (In California, for example, sellers of
business opportunities that require a total initial payment of more
than $500 are required to register, pay an annual fee, and file
disclosure statements about income or earnings potential with the
attorney general's office.) Are there any complaints about the
company on file?

In situations where you sign a contract to purchase a business
opportunity, you have the right to cancel the contract within three
business days. The contract is voidable by fraud or deceit, and you
can demand your deposit be returned.

4. Do a background check. Call your local Better
Business Bureau or visit http://www.bbb.org to obtain a reliability
report on the company you're considering. Also check with the
U.S. Postal Inspection Service in your area to see if any
complaints have been filed. The Postal Inspection Service is a good
resource because it actively investigates promoters who might be in
violation of mail-fraud or false-representation statutes.

"If just one person has filed a complaint and the amount
the individual lost is as little as $30, for example, we'll
have the complaint on file," says postal inspector Kevin
Koscki at the U.S. Postal Inspection Service in Sacramento,
California.

5. Get it in writing. If the seller makes
promises--about delivery, satisfaction or money-back offers--get
confirmation in writing. The more written evidence you collect, the
more proof you'll have if you later have a dispute with the
company.

6. Read the fine print. If you receive a disclosure
statement from the seller or are asked to sign a contract, be sure
to read it carefully. "You may want to take it to an attorney
or a financial advisor," adds Caffey.

7. Keep your cool. "Don't lose your head to
the allure of easy profits. There are no easy profits," warns
Caffey. "If it sounds too good to be true, it probably
is."

You've Been Conned!

What if, despite your best efforts, you still get ripped off?
Begin by contacting the company and asking for your money back. Let
the company know you'll notify law enforcement and other
officials about your experience.

Keep a record of all your conversations and correspondence with
the company. If you send documents, send copies--not originals.
Send correspondence by certified mail, and request a return receipt
to document what the company received.

If you can't resolve the dispute, contact the attorney
general's office in your state and in the state where the
company is based. Provide the name and address of the company, a
copy of its advertisement, all correspondence to and from the
company, a copy of your check or money order, and evidence that you
had to send money before you received any information or
merchandise. The attorney general's staff can tell you if
you're protected by any state laws.

You should also contact the Federal Trade Commission (FTC).
Although the FTC can't resolve individual disputes, the
information you provide may help the commission determine whether
there's been a pattern of possible law violations requiring it
to take action against the company. Write to Consumer Response
Center, Federal Trade Commission, Washington, DC 20580, or call
(202) 326-2222.

"Operators of work-at-home schemes like to keep the dollar
amount low so more people will send in money. But that makes it
harder to prosecute," explains postal inspector Kevin Koscki
at the U.S. Postal Inspection Service. "That's why the
best advice is still this:

The National Fraud Information Center, a project of the
National Consumers League, operates a hot line to help consumers
who may want to file complaints. It also sends information to a
fraud database maintained by the FTC and the National Association
of Attorneys General. Call (800) 876-7060 or visit http://www.fraud.org